Whilst joint property owners generally chose to own their property as "beneficial joint tenants", it may be more appropriate for a "tenancy in common" to be created. Tax planning may mean that a severance of a joint tenancy can ensure the IHT nil-rate band is used on the first death. This can be supplemented by a nil rate tax trust in a will, and in conjunction with an application to the Land Registry.
It is important that property owners consider their position carefully. Following increases in property values over the last number of years, there is a substantial chance that Inheritance Tax will apply. We can offer you the necessary advice and expertise to ensure that these matters are properly dealt with either at the time of a property purchase, or as part of your retainer to us to deal with Inheritance Tax planning. Please contact David Taylor for further details.
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